Angel Investors Now Placing $20B Annually Into Startups

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Om Capital Management to Invest in Startups and Microcaps in 2014

Although placing money into a startup company is an extremely risky investment, with most such bets losing everything over time, angel investors still place $20,000,000,000 into such ventures annually, according to an article by VentureBeat. The article breaks the amounts down further, stating that these investments are made in about 60,000 different companies, and that 80% of this money goes into seed or early stage investment.

Om Capital Management, Inc., a local venture capital firm, plans to invest in such startups in the coming year, as well as in micro-cap companies, those with market capitalizations between $50 million and $300 million. "Though there is high risk in such investments, there is also the potential for phenomenal returns," states angel investor Vik Vad, a principal of the company. "If the product or service is something useful, and the company has gained some traction in the marketplace, the time may be right for the company to expand rapidly."

Om Capital Management carefully analyzes each potential investment, scrutinizing the books, the strategic plan, and the founders, management, and other investors before moving forward. Because there may be no return on the investment for many years, and, an exit strategy may not materialize, such thorough inquiry must be done from the beginning.

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Om Capital Management Inc.
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